Carrier Liability and Compensation Under the CMR: A Full Guide

When the CMR applies: scope and exclusions

Under Article 1 of the CMR Convention, the Convention applies to every contract for the carriage of goods by road for reward where the place of taking over and the place of delivery are in two different countries, at least one of which is a party to the Convention. The nationality and residence of the parties are irrelevant. Turkiye is a party both to the Convention and to the 1978 Protocol, which restates the compensation limit in Special Drawing Rights (SDR) (it acceded to both on 2 August 1995).

Where the vehicle carrying the goods is itself carried over part of the journey by sea, rail, inland waterway or air and the goods are not unloaded, the CMR still applies to the whole carriage (Article 2). The Convention does not apply to carriage under international postal conventions, to funeral consignments or to furniture removals (Article 1(4)).

The evidential value of the note

The CMR is prima facie evidence of the terms of the contract of carriage and of the carrier taking over the goods (Article 9). On taking over the goods the carrier must check the number of packages, their marks and numbers, and the apparent condition of the goods and their packing (Article 8). If checking is not possible, or the carrier has reservations, these must be entered in box 8. Where the note contains no reservation, the goods and packing are presumed to have been taken over in apparent good condition.

A reservation in box 8 is binding on the sender only if the sender has also agreed to it (Article 8(2)). An issue found during loading should therefore be recorded in a joint report rather than by a one-sided note.

When the carrier is liable

Under Article 17(1) the carrier is liable for the total or partial loss of the goods, for damage, and for delay occurring between the time of taking over and the time of delivery. This liability does not depend on fault: if the loss arose in that window, the carrier must rely on one of the grounds set out in the Convention to be relieved of it.

When the carrier is relieved of liability

General grounds (Article 17(2))

The carrier is relieved of liability if the loss, damage or delay was caused by the claimant's wrongful act or neglect, by the claimant's instructions, by inherent vice of the goods, or by circumstances which the carrier could not avoid and the consequences of which it could not prevent. The carrier cannot rely on the defective condition of the vehicle it uses, or on the wrongful act of the person from whom it hired the vehicle or of that person's servants (Article 17(3)).

Special risks (Article 17(4))

In certain situations the carrier's liability is reduced because of the particular risks inherent in one of the following:

• Use of open, unsheeted vehicles when this has been expressly agreed and specified in the note
• The lack of, or defective condition of, packing for goods that are by nature liable to wastage or damage when not properly packed
• Handling, loading, stowage or unloading of the goods by the sender, the consignee or people acting for them
• The nature of certain goods, which exposes them to loss or damage through breakage, rust, internal decay, desiccation, leakage, normal wastage, or the action of moth or vermin
• Insufficiency or inadequacy of marks or numbers on the packages
• The carriage of livestock

The burden of proof works as follows (Article 18): the carrier proves the general grounds. If the carrier shows that the loss or damage could be attributed to one of the special risks, it is presumed to have been so caused; the claimant may prove the contrary. For temperature-sensitive goods carried in specially equipped vehicles, the carrier may rely on the "open vehicle" risk only if it proves that all steps regarding the choice, maintenance and use of the equipment were taken and that any special instructions were followed (Article 18(4)).

Delay and goods treated as lost

Delay occurs when the goods are not delivered within the agreed time-limit or, if none was agreed, when the actual duration of the carriage exceeds what it would be reasonable to allow a diligent carrier (Article 19). If the goods are not delivered within 30 days of the expiry of the agreed time-limit, or within 60 days of taking over where no time-limit was agreed, the claimant may treat them as lost (Article 20).

How compensation is calculated

For loss, compensation is calculated by reference to the value of the goods at the place and time they were accepted for carriage (Article 23), determined by the commodity exchange price, failing that the market price, and failing both the normal value of goods of the same kind and quality.

In addition, on total loss the carriage charges, customs duties and other charges are refunded in full, and in proportion on partial loss (Article 23(4)). No further damages are payable.

The 8.33 SDR per kilogram limit, and how it differs by country

In the original 1956 text the limit was "25 gold francs per kilogram". The Protocol of 5 July 1978 changed it to 8.33 SDR per kilogram of gross weight short and entered into force on 28 December 1980. The SDR (Special Drawing Right) is a basket of currencies published by the IMF each business day; to find the current cap, 8.33 is multiplied by the SDR rate for the currency of the claim on the relevant day.

One distinction matters: not every CMR state is a party to the 1978 Protocol. Which limit applies generally depends on whether the state where the case is heard has ratified the Protocol; in a state that has not, the old gold-franc basis technically still applies. For the main countries Dealti serves:

China is not a party to the CMR Convention; on a Turkiye to China road carriage the CMR still applies because Turkiye is a party. In practice this limit is usually below the real value of the goods; for high-value cargo the gap should be closed with a declared value (Article 24), a special interest in delivery (Article 26), or separate cargo insurance.

Declared value and special interest in delivery (Articles 24 and 26)

Against an agreed surcharge, the sender may enter in the note a declared value exceeding the 8.33 SDR limit; the declared amount then replaces that limit (Article 24). The sender may also declare an amount representing a special interest in delivery for loss, damage or exceeding the agreed time-limit; this allows further proven loss to be claimed up to the declared amount, in addition to the compensation under Articles 23, 24 and 25 (Article 26). Both declarations must be entered in the note and the surcharge paid.

When the limits fall away: wilful misconduct and equivalent default

If the damage was caused by the carrier's wilful misconduct, or by a default treated as equivalent to wilful misconduct under the law of the court seized of the case, the carrier cannot rely on the provisions that exclude or limit its liability or that shift the burden of proof (Article 29). The 8.33 SDR limit then does not apply and the carrier may be liable for the full actual loss. The same applies where the carrier's servants or other people it uses commit such misconduct within the scope of their employment.

Dangerous goods

If the sender hands over goods of a dangerous nature, it must inform the carrier of the exact nature of the danger and, if necessary, of the precautions to be taken (Article 22). If this is not entered in the note, the burden of proving that the carrier knew the exact nature of the danger falls on the sender or consignee. Goods the carrier did not know were dangerous may at any time be unloaded, destroyed or rendered harmless without compensation, and the sender is liable for all resulting expense and loss.

Checking on delivery and reservation time-limits

If the consignee takes delivery without checking the goods with the carrier or sending written reservations, the goods are presumed to have been received in the condition described in the note (Article 30). To rebut this presumption the reservation must be sent in time and in the correct form:

The carrier and the consignee must give each other every reasonable facility for making the necessary investigations and checks (Article 30(5)).

Jurisdiction and limitation period

The claimant may bring an action in a court agreed by the parties and, in addition, in the courts of the country where the defendant is resident or where the place of taking over or the place designated for delivery is situated (Article 31). No second action may be brought between the same parties on the same grounds.

The limitation period for actions arising out of CMR carriage is one year. In the case of wilful misconduct, or default treated as equivalent, it is three years (Article 32). Time starts to run: for partial loss, damage or delay, from the date of delivery; for total loss, from the 30th day after the expiry of the agreed time-limit (or the 60th day after taking over where none was agreed); in other cases, three months after the making of the contract. A written claim suspends the limitation period until the carrier rejects the claim in writing and returns the attached documents. The contract may also contain an arbitration clause, provided it requires the tribunal to apply the Convention (Article 33).

Successive carriers

Where carriage governed by a single contract is performed by successive road carriers, each is responsible for the whole operation; the second and each following carrier becomes a party to the contract by accepting the goods and the note (Article 34). An action for loss, damage or delay may be brought only against the first carrier, the last carrier, or the carrier performing the portion of the carriage during which the event occurred (Article 36). A carrier that has paid compensation has a right of recovery against the others: the carrier that caused the damage bears it alone, and where this cannot be determined the compensation is shared in proportion to the share of the carriage charges (Articles 37 and 38).

Stipulations contrary to the Convention are void

Any stipulation that directly or indirectly derogates from the CMR is null and void (Article 41); the nullity of that stipulation does not void the rest of the contract. In particular, a clause giving the carrier the benefit of the cargo insurance, or any clause shifting the burden of proof, is void. A contractual clause setting liability below the CMR level therefore does not apply where the carriage falls under the Convention.

CMR insurance: liability cover or cargo cover

Two different products should not be confused. CMR liability insurance covers the carrier's liability under the Convention, that is, the amount generally capped at 8.33 SDR per kilogram; the policy is taken out by the carrier. Cargo insurance covers the value of the goods themselves and is usually taken out by the cargo owner. Where the value of the goods is clearly above the 8.33 SDR per kilogram limit, relying only on the carrier's liability insurance can leave the cargo owner exposed; the gap is closed with cargo insurance, a declared value (Article 24), or a special interest in delivery (Article 26).

CMR and the TIR Carnet

These two documents should not be confused. The CMR evidences the contract of carriage and the carrier's liability. The TIR Carnet is an international guarantee system for customs duties and taxes in transit; it does not replace the contract of carriage and does not affect the carrier's liability under the Convention. On a single carriage the two are usually used together: the CMR is the document for the goods and the contract, the TIR Carnet for the customs guarantee.

CMR processes with Dealti Logistics

Dealti Logistics manages the follow-up of transit (T1 / TIR) and CMR processes on international road transport between Turkiye and Central Asia; checking reservations at loading, entering customs instructions correctly and handling reports on delivery are part of that follow-up. For the routes we serve, see the destinations page; for the customs side, the customs clearance page; or use the quote form.